Do Realtor Bonuses Make a Difference?
Marketing
Do Realtor Bonuses and Incentives make a difference when it comes to increased traffic and Home Sales? When agents go for listings, they present themselves first and then what their company offers the seller. If they have done a good job with their pre-listing homework, they look at all of the Actives, Pendings and Solds, not only in the neighborhood, but also in the zip code. We know that Active Listings do not help us when it comes to setting prices or even with the Appraisal but it is interesting to see what percentages are being offered to the agent that brings the buyer.
If there are 30 homes for sale in a neighborhood and 20 of them are listed at 3% and 5 are at 2.5% and 5 are at 4%, does this change the agents mind as to what to show their customers? This is similar to a teacher grading an essay paper. We know that other factors should not play a factor and we know that if we "steer" customers to or away from a particular listing that we are risking licensure but if the neighborhood is a cookie cutter one and all of the homes are alike, does this make a difference?
The other factor is listing agents who get their customers to provide an incentive for the Realtor as a bonus for selling their property. Most Real Estate companies pass the Bonuses through to the agent at 100% so agents can often make more money on the bonus than they can on theor commission split for that deal.
Many argue that it is better to take that money and give an incentive to the buyer in the form of closing costs or "extras".
The answer to what works only lies within each deal. One of my closings provided $7,000 in escrow for a black wrought iron fence. The customers were happy.
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Date: Monday, January, 21st 2008 @ 01:22:09 PMViews: 727
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